Income inequality: additional data

Lane Kenworthy, The Good SocietyJuly 2017

INCOME INEQUALITY BETWEEN THE 1% AND THE 99%

Data on the top 1%’s share of income are available for nineteen rich democracies. They are compiled by the World Top Income Database, using tax records. These data are for pretax income excluding capital gains.

The following charts show the Gini coefficient for household income in the lower 99%. The Gini can range from zero to 100, with larger numbers indicating greater inequality. The incomes include government transfers and subtract taxes. The data are from three sources: the Luxembourg Income Study (LIS), the OECD, and Frederick Solt’s Standardized World Income Inequality Database.

The following charts show the ratio of household income at the 90th percentile to income at the 50th percentile (median). This is a helpful measure of inequality on the upper half of the income ladder, excluding those at the top. For most countries we have two data sources: the Luxembourg Income Study (LIS) and the OECD.

Figure A3. Income inequality between the upper-middle and the middleRatio of income at the 90th percentile to income at the 50th percentile. Posttransfer-posttax income, adjusted for household size. The vertical axes don’t begin at one. Thick lines: Luxembourg Income Study data. Thin lines: OECD data.

INCOME INEQUALITY IN THE LOWER HALF

The following charts show the ratio of household income at the 50th percentile (median) to income at the 10th percentile. This is a useful indicator of inequality within the lower half of the income distribution. The incomes include government transfers and subtract taxes. For most countries we have two data sources: the Luxembourg Income Study (LIS) and the OECD.

Figure A4. Income inequality in the lower halfRatio of income at the 50th percentile to income at the 10th percentile. Posttransfer-posttax income, adjusted for household size. The vertical axes don’t begin at one. Thick lines: Luxembourg Income Study data. Thin lines: OECD data.